JAKARTA The technology giant from the United States, Apple Inc., is reportedly secretly transporting 600 tons of iPhone from India to the United States using chartered cargo aircraft. This move is referred to as an effort to avoid a spike in import rates imposed by President Donald Trump on products from China.
According to the report, Apple is taking advantage of increased production in India and speeding up shipments to the US to build iPhone stock reserves before the new rates take full effect. With production capacities continuing to increase in India, Apple takes advantage of a tariff gap where import rates from India are only 26%, much lower than tariffs from China which have soared to 125% since Wednesday 9 April.
"Apple wants to beat the tariff," said one source familiar with the company's secret strategy.
Apple reportedly lobbied airport authorities in Chennai, Tamil Nadu, India, to speed up the customs process from 30 hours to just 6 hours through a "green corridor" scheme, a system similar to that Apple has used at several airports in China.
Since March, about six cargo planes with a capacity of 100 tons have each departed from Chennai to various cities in the United States such as Chicago, Los Angeles, New York, and San Francisco. Given the average weight of one iPhone 14 along with the charging cable is about 350 grams, it is estimated that about 1.5 million iPhone units have been delivered in this operation.
Apple's big move is also supported by the Indian government. A senior official said that Prime Minister Narendra Modi encouraged officials to simplify Apple's process in accelerating the delivery.
To meet the target of increasing production by up to 20%, Apple through its main partner in India Foxconn has increased the number of workers and expanded operating hours including opening production on Sunday, which is usually a holiday.
Sources from within the plant said that the Foxconn plant in Chennai that produces the iPhone 15 and 16 models has now been fully operational for seven days a week. Last year alone, the factory produced about 20 million iPhone units.
Apple is now increasingly focusing India as a major manufacturing hub outside China, particularly in efforts to diversify supply chains. Apart from Foxconn, other suppliers such as Tata are also building two additional factories to support Apple's expansion of the region.
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Customs data showed the value of shipments from Foxconn India to the US jumped sharply to USD 770 million in January and USD 643 million in February, compared to the average shipment of between USD 110 to 331 million in the previous four months.
Apple itself is known to sell more than 220 million iPhone units worldwide. According to Counterpoint Research, about 20% of all iPhones entering the United States market are now from India, while the rest are still from China.
With a high rate from China, the price of the iPhone in the US has the potential to rise significantly. Based on the estimated Rosenblatt Securities, at a rate of 54%, the price of the iPhone 16 Pro Max, which previously sold for US$599, could jump to US$2,300. Now at a rate of 12%, the price could rise much higher.
Apple and India's Ministry of Aviation did not respond to Reuters' request for comment on this report. All sources interviewed requested that their identities be kept secret because this discussion was confidential.
Apple's move shows how serious the company is in responding to the uncertainty of global trade policy as well as a sign that India is now truly an important pillar in Apple's future production strategy.
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